BlackRock has transferred more than $650 million in Bitcoin and Ethereum to Coinbase Prime, sparking fresh concerns about potential large-scale selling as the crypto market continues to weaken. The shift comes during a period of heightened volatility, with Bitcoin losing key support levels and Ethereum struggling to maintain recent gains. Meanwhile, Strategy is taking the opposite approach, expanding its Bitcoin holdings despite market uncertainty.
BlackRock’s Wallet Activity Sparks Market Anxiety
Data from Lookonchain shows that wallets linked to BlackRock executed major transfers:
- 4,880 BTC worth around $467 million
- 54,730 ETH valued at roughly $176 million
Both transfers happened within one hour, fueling speculation about possible liquidation or rebalancing. These moves followed a record weekly outflow from BlackRock’s Bitcoin ETF, adding to fears of institutional selling.
Crypto analyst Ted Pillows confirmed the amounts and described the transfers as clear sell-side activity. Market watchers noted that institutions rarely move hundreds of millions in crypto to exchanges unless preparing for settlements or redemptions.
Immediately after the transfers, Bitcoin fell to about $94,000, extending its weekly decline past 10%. Ethereum also weakened, now trading near $3,140.
ETF Outflows Intensify Pressure on BTC and ETH
The broader digital asset market is experiencing its largest fund outflows since February. According to CoinShares:
- Bitcoin products recorded $1.38 billion in outflows
- Ethereum saw $689 million pulled, nearly 4% of AUM
This marks the third consecutive week of withdrawals for both assets. Uncertainty around monetary policy and increased whale selling have accelerated the trend. Ethereum has taken a harder hit, signaling weaker institutional confidence compared to Bitcoin.
In contrast, Strategy acquired 8,178 BTC, adding to its long-term position even as broader sentiment deteriorates.
Market Sentiment Drops to Extreme Fear
These developments come during a fragile period for crypto markets. Liquidity is thinning, leverage is being flushed out, and even moderate selling can trigger aggressive price drops.
The Bitcoin Fear & Greed Index has plunged to 14, reflecting extreme fear — one of the lowest readings since early March. Analysts warn that any additional selling from major ETF issuers could deepen the decline.b
